The net profit of CEZ (non-consolidated) in the first half of this year more than doubled to 10.9 billion CZK

CEZ Power Company reached a net profit of 10,896 billion CZK in the first half of the year, which was a year-on-year increase of 111 per cent. Besides improving operation results, the increase in profit was mainly influenced by dividend acceptance from daughter companies amounting roughly 4 billion CZK. The trend of growing economic results of CEZ and the Group continues this year as well. The operating profit was 10.931 million CZK and was 58 percent up on last year. The company managed to reduce its costs by over 1.3 billion CZK while incomes increased by 2.7 billion CZK.

We are mainly pleased by the fact, that we managed not only to keep , but even significantly reduce our costs, for instance even in the area of personal costs, during an outstanding income increase .A constant pressure on economies brings its effects, said as an introduction Petr Voboril, Member of the Board and Financial Director of CEZ and continued: Our long-term goal is to become the leader on electricity markets in Central and South-Eastern Europe and be an efficient competitor of West-European power companies. Already now, many of our indexes are better than those of our competitors.

The electricity production in CEZ power plants reached 30,224 GWh in the first half of this year. The coal-fired power plants account for 56 % of the production, which is still the largest share although it has decreased by 3 per cent in favour of nuclear plants´ production. The production in nuclear plants has increased by more than 7 per cent and accounts for 41 % of total production. The remaining 3 % have been supplied by hydro power plants and other renewable resources.

CEZ spent 3.8 billion CZK on investments (without financial investments). The most important investment project is under way in the Dukovany Nuclear Power Plant, where the works on the change of security systems, monitoring and control of the nuclear parts of the units, which enable to stretch out their life span at least by 2025, continue. CEZ has also initiated preparatory work on a complete renewal of the Tusimice coal-fired power plant, which is the first project of a wide renewal of resources process that is in for CEZ.

The rising electricity demand in the Czech Republic has increased electricity sales of CEZ in the country by 2.2 per cent, when export has fallen on the other side. The Central-European region expects a decrease in production capacities in the following years. That is a business opportunity which we intent to use. This week there is going to be a CEZ auction for a virtual power plant and its result will give us a signal of what electricity demand there is in the Czech Republic and if our market will develop the same way as the markets in the neighbouring countries. Everything indicates that the demand will markedly exceed the offer, said Alan Svoboda, Member of the Board and Sales Director of CEZ.

Table: Economic results of CEZ (non-consolidated) for the 1st half of 2005

(million CZK)	year-on-year
	change

Operating revenues - electricity incomes	33 770 32 522	+ 8,5 % + 8,8 %
Operating costs	22 839	- 5,5 %
Operating profit	10 931	+ 57,8 %
Pre-tax profit	12 785	+ 94,5 %
After-tax profit	10 896	+ 110,7 %

Note.: according to the international accounting standards
Ladislav Kriz, Press Officer of CEZ

1. 8. 2005